Indian Overseas Bank

Indian Overseas Bank News

Banks typically write off NPAs after four years for fully provisioned accounts. However, banks continue to pursue various recovery steps to get back whatever portion of their loan outstanding they can from the borrowers.

Addressing media persons, R Subramaniakumar, MD & CEO, said the bank posted the loss in Q3 due to high provisions towards NPAs.

The bank clarified that the move will not impact its equity capital structure. On the benefit side, IOB would be in a position to declare dividends sooner, with a clean balance sheet, as the bank had posted 29 per cent growth in operating profit in the second quarter.